BILL NUMBER: AB 1551	CHAPTERED  10/10/99

	CHAPTER   981
	FILED WITH SECRETARY OF STATE   OCTOBER 10, 1999
	APPROVED BY GOVERNOR   OCTOBER 10, 1999
	PASSED THE ASSEMBLY   SEPTEMBER 9, 1999
	PASSED THE SENATE   SEPTEMBER 7, 1999
	AMENDED IN SENATE   SEPTEMBER 2, 1999
	AMENDED IN SENATE   AUGUST 16, 1999
	AMENDED IN SENATE   JULY 1, 1999
	AMENDED IN SENATE   JUNE 17, 1999
	AMENDED IN ASSEMBLY   MAY 28, 1999
	AMENDED IN ASSEMBLY   APRIL 27, 1999
	AMENDED IN ASSEMBLY   APRIL 5, 1999

INTRODUCED BY   Assembly Member Pescetti

                        FEBRUARY 26, 1999

   An act to add Article 10 (commencing with Section 17077.10) to
Chapter 12.5 of Part 10 of the Education Code, to amend Section
15814.15 of the Government Code, and to amend Section 25008.5 of the
Public Resources Code, relating to energy resources.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1551, Pescetti.   Energy efficiency.
   (1) Existing law, the Leroy F. Greene School Facilities Act of
1998, (the Greene Act of 1998) establishes a program in which the
State Allocation Board is required to provide state per-pupil
funding, including hardship funding, for new school facilities
construction and school facilities modernization for applicant school
districts.
   Existing law requires all new state public buildings and publicly
funded schools to be models of energy efficiency and to be designed,
constructed, and equipped with all energy efficiency measures,
materials, and devices that are feasible and cost effective over the
life of the building.
   This bill would authorize, as part of the requirements for
submission of an application to the State Allocation Board for new
construction funding pursuant to the Greene Act of 1998, the
applicant school district to certify that an energy analysis and
report, not to exceed prescribed costs, has been prepared that sets
forth the utility savings that would be generated if the facilities
were designed, constructed, and equipped, with the energy efficiency
and renewable energy technology, that would make the facilities as
designed exceed the minimum building energy-efficiency standards
mandated for new public buildings through the use of energy
efficiency and renewable energy technologies.  The bill would permit
a school district to count funds relating to energy efficiency
measures or programs actually applied to the project received from
prescribed sources, that may include the Public Utilities Commission.

   (2) Existing law authorizes the State Public Works Board, until
January 1, 2000, to issue revenue bonds, notes, and bond anticipation
notes to finance the cost of cogeneration equipment, alternative
energy equipment, and conservation measures in public buildings in an
amount of $50,000,000 in each of the 10 fiscal years beginning with
the 1982-83 fiscal year, but provides that any portion of that
authorization not used in any fiscal year may be used in any future
fiscal year.
   This bill would provide that the total amount of revenue bonds,
notes, and bond anticipation notes issued by the board may not exceed
a total amount of $500,000,000, and would extend to January 1, 2005,
the termination date of those provisions.
   (3) Existing law, the Warren-Alquist State Energy Resources
Conservation and Development Act, until January 1, 2000, declares
that it is the policy of the state to encourage 3rd-party financing
of energy and water projects at state-owned sites and that
development of energy and water projects at state-owned sites can be
accelerated where reasonable incentives are provided, and sets forth
specified incentive benefits between the state and the institutions
siting the energy and water projects.
   This bill would extend to January 1, 2005, the termination date of
those provisions.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Article 10 (commencing with Section 17077.10) is added
to Chapter 12.5 of Part 10 of the Education Code, to read:

      Article 10.  Energy Analysis and Report

   17077.10.  (a) As part of the requirements for submission of an
application to the State Allocation Board for funding pursuant to
this chapter for any new construction or modernization project, the
applicant school district  may, at the time of submission of the
final drawings to the Division of the State Architect, certify that
an energy analysis and report has been prepared that sets forth the
utility savings that would be generated if the facilities were
designed, constructed, and equipped, with the energy efficiency and
renewable technologies that would make the facilities exceed the
minimum building energy-efficiency standards mandated for new public
buildings pursuant to the latest edition of the California Building
Standards Code through the use of energy efficiency and renewable
energy technologies.
   (b) The energy analysis and report shall include a verifiable
life-cycle cost analysis for each proposed energy conservation
measure and renewable energy that may include, but need not be
limited to, photovoltaic parking lot and security lighting, and solar
swimming pool and domestic water heating, showing a return on
investment of less than 15 years.
   (c) The cost of the energy analyses and reports shall not exceed:

   (1) Seven thousand five hundred dollars ($7,500) per project for
elementary schools.
   (2) Ten thousand dollars ($10,000) per project for middle schools.

   (3) Fifteen thousand dollars ($15,000) per project for high
schools.
   (d) An applicant school district may count the following funds or
expenditures toward meeting the local matching funds requirement
under this chapter:
   (1) The amount from any local sources actually expended on the
project by the applicant school district for an energy audit.
   (2) The amount actually applied to the project from any incentive,
grant, or rebate, received by the applicant school district from a
program funded pursuant to Section 381 of the Public Utilities Code.

  SEC. 2.  Section 15814.15 of the Government Code is amended to
read:
   15814.15.  (a) The board may issue revenue bonds, notes, including
commercial paper notes and other forms of negotiable short-term
indebtedness, and bond anticipation notes pursuant to Chapter 5
(commencing with Section 15830) to finance the cost of cogeneration
equipment, alternative energy equipment, and conservation measures
constituting the public buildings authorized by this chapter.  The
total amount of revenue bonds, notes, including commercial paper
notes and other forms of negotiable short-term indebtedness, and bond
anticipation notes authorized to be issued pursuant to this section
in each of the 10 fiscal years beginning with the 1982-83 fiscal year
is fifty million dollars ($50,000,000), for a total of five hundred
million dollars ($500,000,000).  Any portion of the authorization not
used in any fiscal year may be used in any future fiscal year.
   (b) This section shall remain in effect only until January 1,
2005, and as of that date is repealed, unless a later enacted
statute, which is enacted before January 1, 2005, deletes or extends
that date.
  SEC. 3.  Section 25008.5 of the Public Resources Code is amended to
read:
   25008.5.  (a) The Legislature hereby finds and declares that in
order to maximize public benefit from private sector participation in
state operations and to maximize the Legislature's ability to devote
limited resources of the state to the responsibilities of state
government that are less attractive to private sector investment, it
is the policy of the state to encourage third-party financing of
energy and water projects, including, but not limited to,
cogeneration facilities, at state-owned sites.
   (b) The Legislature further finds and declares that the
development of energy and water projects at state-owned sites can be
accelerated where reasonable incentives are provided to the siting
institutions.  These incentives are necessary to offset the long-term
administrative, operational, and technical complexities of energy
and water projects developed under this section.  Reasonable
incentives for implementing the policy of this section shall include
the sharing of benefits derived from energy and water projects
between the state and the siting institution.  The benefits to the
state and siting institutions derived from projects implemented under
this section may include, but are not limited to, annual cash
revenues, avoided capital costs, reduced energy costs, reduced water
costs, site improvements, and additional operations and maintenance
resources.  The annual cash revenues derived from those projects
shall be shared equally between the state and the siting institution,
if both of the following conditions are met:
   (1) The use of cash and avoided cost benefits by siting
institutions is to be limited to improvement of ongoing maintenance,
deferred maintenance, cost-effective energy improvements, and other
infrastructure improvements.  To the extent an institution receives
annual cash revenues under this section, the institution shall retain
any money it receives, but not to exceed one-half of this amount, in
a special deposit fund account, which shall be continuously
appropriated to the institution for the purposes of this section.
The state's benefit share, and the siting institution's benefit share
that exceeds its needs, shall be deposited in the Energy and
Resources Fund or, if this fund is not in existence, the General Fund
for the purpose of investing in renewable resources programs and
energy efficiency improvements at state facilities.
   (2) The use of benefits shall be in addition to, and shall not
supplant or replace, funding from traditional sources for a siting
institution's normal operations and maintenance or capital outlay
budgets.
   (c) The Legislature further finds and declares that a
benefit-sharing incentive is applicable to energy projects reported
to, or authorized by, the Legislature pursuant to Section 13304 or
14671.6 of the Government Code.  This section shall not apply to
energy projects which are constructed on or at facilities or property
of the State Water Resources Development System.
   (d) Notwithstanding Section 7550.5 of the Government Code, the
Department of General Services shall submit annual reports to the
Legislature on the cost benefit aspects in carrying out this section.

   (e) This section shall remain in effect only until January 1,
2005, and as of that date is repealed, unless a later enacted
statute, which is enacted before January 1, 2005, deletes or extends
that date.
